STRONG greenback demand, broad dollar strength and weak copper outlook are likely to put the local unit under pressure in the medium to short term, Zanaco has observed.
But the South African rand, which collapsed to a record low on Monday, posted a marginal appreciation against the United States dollar although global concerns about China’s economy and investors’ worries about domestic political and economic strains continue to put the commodity-driven currencies under pressure.
Zanaco says in its daily treasury that the Kwacha, which is expected to remain between K11.10 and K11.20, is under pressure due to increased demand for the dollar and continued fall of copper prices on the global market.
On Monday, the Kwacha declined against the US dollar, weighed down by sustained corporate demand.
“Importers dominated market activity as they continued to buy up the foreign currency. From an open of K11.01 and K11.03, the Kwacha was the vulnerable of the two currencies as the Kwacha fell to a low of K11.06 and K11.08 against the greenback where it closed off the day,” the bank says.
A check in bureaux de change in Lusaka revealed that the Kwacha was trading around K10.90 and K11.20 on bid and offer, respectively.
At C&A Bureau, the local unit was pegged at K10.90 and K11.20 while Golden Coin pegged the local unit at K11.00 and K11.18 on bid and offer, respectively.
On the regional front, the South African rand has continued to trade on the downward trend although it marginally appreciated to 16.8675 against the dollar from 17.9950.
Reuters, reports that the rand fell by over nine percent trading at 17.9950 against the dollar, the weakest level ever recorded.
The Nigerian naira remained unchanged yesterday from Monday’s trading session, trading at 199.14 against the dollar while the Kenyan shilling was pegged at 102.34 from 102.399.